Apollo margins hit by rising raw material prices 

Gurgaon, India – Apollo Tyres Ltd has seen its margins hit by the rising materials prices and despite efforts to offset the impact through price adjustments.

Second quarter operating profit fell nearly 11% to Rs 6.4 billion (€73 million), on 18% higher sales of Rs.50.7 billion, Apollo reported 29 Oct.

First half operating profit rose 26% to Rs. 12.0 billion on 35% higher sales at Rs96.6 billion, Apollo added.

Apollo said it witnessed ‘robust demand’ for its products across categories and regions during the second ended 30 Sept. 

“[This] is visible in the healthy revenue growth, both for the second quarter and in the first half of the fiscal,” said chairman Onkar Kanwar. 

According to the company official, some of the recent additions to product offering, is helping Apollo further extend its position in the commercial vehicle and passenger vehicle space in India. 

“Europe too, continues to grow, especially in the UHP (ultra high performance) and UUHP (ultra ultra high performance) segment in PV category,” he added. 

However, he went on to say, the pressure on margin front continues, “due to the rising raw material prices, despite taking multiple price corrections in the last few months.”